Treasury yields rise, dollar falls on fiscal concerns post US downgrade

From Yahoo Finance.: 2025-05-18 20:41:00

Longer-dated Treasury yields rose as the dollar fell due to U.S. debt concerns and a tax-cut bill following Moody’s downgrade of the country’s credit rating. Major U.S. stock indexes recovered from early losses. The 30-year Treasury yield hit an 18-month high amid fears of increased debt from the tax bill. Treasury Secretary Bessent dismissed the downgrade, while Fed officials commented on market reactions. The Dow Jones, S&P 500, and Nasdaq rose. MSCI’s global stock index and European stocks also increased, but Asia-Pacific shares fell. The U.S. dollar declined against safe-haven currencies. Trump’s tariff war affected consumer sentiment, with analysts watching Home Depot and Target earnings. Atlanta Fed President Bostic discussed interest rate cuts and rising inflation. G7 finance leaders will meet on various economic issues. Oil prices rose slightly amidst U.S.-Iran nuclear talks. Gold prices also increased.



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